To The Moon

Investors haven't gotten much relief from the recent downturn in the stock market, and as the end of January approaches, it now appears likely that stocks will post their worst month since the coronavirus bear market plunge nearly two years ago. As of 8:30 a.m. ET, futures on the Dow Jones Industrial Average (DJINDICES:^DJI) were down 336 points to 33,707. S&P 500 (SNPINDEX:^GSPC) futures dropped 41 points to 4,277, and Nasdaq Composite (NASDAQINDEX:^IXIC) futures fell 117 points to 13,870.

Many on Wall Street have been looking for signs that the correction might come to an end, and pinning their hopes on Apple (NASDAQ:AAPL) seemed like a reasonable bet. Indeed, Apple's earnings results late Thursday showed solid performance that has the stock moving higher in premarket trading Friday morning. Yet growth investors also have to focus on some of the companies that moved so aggressively higher during the best of times to see when they might bounce. One prominent software-as-a-service (SaaS) stock got a nice move higher in premarket trading. Below, you'll learn more about it, but first, let's take a look at what Apple said in its quarterly report.

Apple picks up some ground

Shares of Apple rose nearly 2% as of 8:30 a.m. ET, pulling back from much larger gains in Thursday's after-hours session. The iPhone giant saw amazing results, but worries about what the future could bring are still weighing on the tech company's stock despite its success.

Apple's numbers showed the scope of the world's most valuable stock. Fiscal first-quarter revenue came in at $123.9 billion, up 11% year over year and setting a new record. Net income rose at an even healthier 20% rate to $34.6 billion. That produced earnings of $2.10 per share, which was better than many had expected.

Looking more closely at the numbers, Apple had areas of strength and weakness. Mac sales stood out the most, with a 25% rise from year-ago levels prompted by strong product offerings. Service-related revenue was the second-best performer among the company's categories, rising 24% year over year. Wearables posted modest 13% gains, while sales of iPhone picked up 9%. Only the iPad lost ground, with revenue falling 14% year over year.

Geographically, China was Apple's fastest-growing market, with the rest of the Asia-Pacific region showing strong growth as well with the notable exception of Japan. Sales from the Americas and Europe showed solid gains.

Apple continues to be a cash cow, returning $27 billion to shareholders during the quarter. That's been a big supporter of the stock and should keep doing so in the years to come.

Atlassian picks up ground

Meanwhile, on the SaaS front, Atlassian (NASDAQ:TEAM) jumped nearly 7%. The workplace collaboration software provider reassured investors who've seen the company's stock fall 40% from recent highs just a few months ago.

Atlassian's growth continued in its fiscal second quarter. Revenue of $689 million was up 37% from year-ago levels. Adjusted net income jumped 34% to $127 million, and Atlassian produced close to $200 million in free cash flow during the period. Adjusted earnings of $0.50 per share were better than most had expected.

Atlassian's strength came from the cloud. Subscription revenue was 64% higher, with data center sales soaring 83% year over year. Indeed, the company's products have enough traction among customers that Atlassian announced price increases of 13% to 15% for its data center products and 10% to 25% for its server offerings, effective mid-February.

Collaboration remains critical across the globe, and Atlassian's tools are valuable. Its stock's performance is also a vital indicator of the strength of the SaaS stock space. It'll take more successes like Atlassian's to reassure investors of the long-term potential it and companies like it have to generate massive growth in future years.